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JT&N Helps Fufeng Group Gain a Complete Victory over the Lawsuit against the US Department of Commerce

2018-10-17/ RECENT DEALS/ Hao LIU

On October 16, 2018, the result of the lawsuit filed by Fufeng Group against the US Department of Commerce was finally announced. The US Department of Commerce issued a notice on the Federal Register announcing that according to the judgment of the US Court of International Trade, it would revise its ruling in the original investigation into the xanthan gum imported from China, and eventually ascertained that the dumping margin of Inner Mongolia Fufeng Biotechnology Co., Ltd. and Shandong Fufeng Fermentation Co., Ltd. (collectively "Fufeng Group") was zero, and revoked the anti-dumping tax order against Fufeng Group.

The US anti-dumping investigation into the xanthan gum imported from China started in 2012. In response to the application made by CP Kelco, an US company, the US Department of Commerce officially launched the original investigation in July of the same year. In the final judgment issued in July 2013 for the original investigation, JT&N helped Fufeng Group win the lowest tax rate among all other responding companies. At the time when the final judgment of the original investigation was issued, the tax rate applicable to Fufeng Group was 12.9%, the tax rate applicable to Zhongxuan, another enterprise selected as a mandatory respondent, was 128.32%, the average tax rate was 70.61%, and the national tax rate in China was 154.07%. Although Fufeng Group obtained the lowest tax rate and had no difficulty in consolidating and expanding its US market, we chose to assist Fufeng Group in bringing the US Department of Commerce to the US Court of International Trade in September of the same year for a number of erroneous practices of the US Department of Commerce in the final ruling on the original investigation. After four retrials, the US Department of Commerce eventually changed its judgment according to the court's request and affirmed that the dumping margin of Fufeng Group in the original investigation was zero, and on this basis, revoked the anti-dumping tax order against Fufeng Group. By then, Fufeng Group had become the only Chinese enterprise that was not subject to the anti-dumping duty order in exporting the xanthan gum to the US.

Since 2014, JT&N has been assisting Fufeng Group in participating in the anti-dumping review investigation into the xanthan gum products, and has helped Fufeng Group to achieve zero tax rate in three consecutive annual administrative reviews. The victory over Fufeng Group's lawsuit against the US Department of Commerce will relieve Fufeng Group from involvement in any further review investigation, and help it completely get rid of the US anti-dumping measures, making it no longer subject to the restrictions of anti-dumping measures.

For years in a row, JT&N has been authorized by Fufeng Group to act as its defense agent in the US xanthan gum anti-dumping case. The project was led by Senior Partner Chen YANG, mainly handled by Senior Partner Zheng XU and Senior Advisor Yazhou WU, and participated by lawyers Hao LIU and Siyi WANG.

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